Tag: Economics

When might the effectiveness of fiscal expansion in increasing the level of output be REDUCED?

Select ONE answer:

1. when it leads to the appreciation of the currency
2. when it results in an increase in the price of government bonds
3. when it is accompanied by an increase in the money supply
4. when the price level remains unchanged

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

What is most likely to result from foreign direct investment in developing economies?

Select ONE answer:

1. a deterioration in the visible trade balances of developing economies
2. a reduction in migration to urban areas
3. a reduction in the transfer of technology to developing economies
4. a rise in per capita levels of consumption in developing economies

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which type of unemployment arose from the worldwide decline in the demand for electronic goods beginning in the summer of 2001?

Select ONE answer:

1. seasonal
2. voluntary
3. frictional
4. structural

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

What is the major cause of high rates of inflation in many developing economies?

Select ONE answer:

1. balance of payments deficits
2. budget deficits
3. low levels of unemployment
4. overvalued exchange rates

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which method of financing a government deficit will leave the money supply unchanged?

Select ONE answer:

1. the sale of government securities to the central bank
2. the sale of government securities to the commercial banks
3. the sale of government securities to domestic residents
4. the sale of government securities to overseas residents

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.